Canary Capital’s ETF Developments
Canary Capital has taken a significant step toward realizing its plans for new financial products by revising its applications for a spot Litecoin ETF and a Hedera ETF. These updated submissions suggest that both funds are on the brink of approval, even amid the current U.S. government shutdown.
Details of the ETF Applications
On October 7, the firm filed amendments to its S-1 paperwork, specifying the tickers LTCC for the Litecoin fund and HBR for the Hedera fund. Each of these ETFs will have a management fee of 0.95%, a rate that—while exceeding the common range associated with spot Bitcoin ETFs (0.2% to 0.5%)—is considered typical for emerging digital assets.
Custody and Valuation
These ETFs stand out as they will hold the actual underlying tokens, with custody services provided by recognized firms such as BitGo and Coinbase. Their net asset values will be calculated on a daily basis, drawing from aggregated data across multiple exchanges around 4 p.m. ET.
Industry Insights
Eric Balchunas, an ETF analyst at Bloomberg, characterized these recent updates as a final touch before the anticipated launch. He remarked on the 0.95% fee structure, describing it as “pricey” in comparison with Bitcoin ETFs, but typical for innovative funds in the early stages.
Fellow analyst Seyffart noted that the filings have placed both ETFs at a critical juncture, suggesting that success is imminent.
Historical Context and Future Prospects
Canary’s venture into Hedera ETFs harkens back to initial filings made in November 2024, following the establishment of a private HBAR trust for accredited investors a month earlier. For Litecoin, a similar process commenced with filings at the beginning of 2025. Notably, Nasdaq has proactively submitted forms necessary to facilitate the listing of both funds, underscoring the readiness of institutional investors.
Market Outlook
Market experts view these ETFs as leading candidates in the altcoin arena, attributing Litecoin’s status as a commodity and Hedera’s clarity in regulation as advantageous elements. Analysts estimate an approval likelihood exceeding 90% once the SEC is able to resume its usual operations.
Conclusion
Should the Litecoin and HBAR ETFs receive approval, they could herald a new era of institutional interest in cryptocurrencies, extending investment opportunities beyond just Bitcoin and Ethereum. This would further position Canary Capital as a key player in the altcoin ETF market.
